Area bankers seeing slow, steady growth

A new survey of rural bankers in 10 Midwest states shows economic recovery is slowing, but local bankers believe Cape Girardeau is faring better than the rest of the region.

The Rural Mainstreet Economic Report Index dropped to 49.3 in July, from 52.6 the previous month. The index ranges between zero and 100. A score below 50 suggests the economy will slow in the next few months, while a score above 50 indicates growth. The report is done monthly by Creighton University in Nebraska.

Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming were surveyed for the report.

"The feedback I'm getting from my customers, who are mostly small-business owners and farmers, is that everything is getting progressively better," said Danny Essner, executive vice president at Capaha Bank. "Home sales backslid a little because of the tax credit ending, but everyone knew that was coming."

Bank of Missouri president John Thompson said he wonders whether the federal economic stimulus has been beneficial.

"My analogy would be the economy and the government's economic stimulus plan might be like a child on a sugar high. Lots of energy initially, but after the sugar wears off, it's back to a lower energy level," Thompson said.

While the national economy is "very anemic," Thompson said, the local economy is more resilient.

Several bankers said uncertainty about future government finance and health care regulations have some businesses hesitant to expand.

"Everybody got scared by what happened and everyone is being more cautious now," Essner said. "What we are seeing now is slow, steady growth. People are being more conservative in their purchases, but they're still spending."

Kevin Greaser, Alliance Bank's community bank president, said local businesses also are paying more attention to budgets, forecasts and cost-control measures.

"Until we see these businesses expanding, hiring and spending, it's mostly likely this sluggish economic environment will continue, which in turn hurts consumer confidence," Greaser said.

Some people are using the economy as a "convenient excuse" for not living up to their financial commitments, according to Steve Taylor, president and CEO at First Missouri State Bank.

"When people have any kind of trouble, they blame it on the economy. Some of it is legit, but it depends on the industry," Taylor said.

The local economy has strong anchor businesses that haven't experienced large layoffs, such as Southeast Missouri State University, two hospitals and Procter & Gamble, all in Cape Girardeau County, Taylor said.

mmiller@semissourian.com

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Pertinent addresses:

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2 S. Mount Auburn Road, Cape Girardeau, MO

3168 William St., Cape Girardeau, MO

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